Next for Microsoft Xbox: winning casual gamers

Reuters' Scott Hillis reports:

Microsoft has cemented its reputation among hardcore gamers with the launch of "Halo 3," but it is still struggling to attract the mass market audience that has flocked to the Nintendo Wii.

Deutsche Bank analyst Todd Raker believes that stronger-than-expected demand for 'Halo 3' could drive Microsoft's Entertainment and Devices Division EDD to profitability. But Microsoft must attract casual customers as well if the Xbox 360 is going to be a living-room fixture.

So far Microsoft's attempts to attract casual audience have met with mixed results. A lot of the problem is image; the huge buzz around games like "Halo 3" obscures the fact that Microsoft's Xbox Live Arcade has about 100 casual games available for download. Baker expects Microsoft to ramp up marketing aimed at casual gamers in another month or so.